top of page
Notebook and Pen

IMPORTANT STUFF YOU NEED TO KNOW!

Age of New Households being Formed Continues to Drop!

US Homeownership Rate Rises to Almost 66%, Exceeding Pre-Pandemic Levels

By Nicole Shih CoStar News

August 14, 2023 | 1:48 A.M.


A surprising narrative is reshaping the housing market—Millennials are steering the course toward homeownership. The conventional wisdom of younger generations favoring renting is being challenged as recent U.S. Census Bureau data unveils a profound shift.


Over the last five years, homeownership rates surged by 3.7% for under-35 households and 3.2% for the 35-44 age group, upending expectations. This trend dovetails with Millennials entering the pivotal phase of forming households and purchasing primary homes.


The broader picture is equally intriguing; the U.S. homeownership rate is now nearly 66%, exceeding pre-pandemic levels, spurred in part by low mortgage rates and evolving living arrangements during the pandemic.


As Millennials embrace homeownership, they're redefining the market's landscape, underscoring a generational shift with lasting implications. Follow us for in-depth insights into this transformative trend as Millennials continue reshaping real estate norms. Contact us at below to share your thoughts and observations, and BE SURE TO WATCH OUR NEXT MARKET UPDATE VIDEO!


Younger Households Propel Surge in US Homeownership


Younger households are typically more likely to rent than own homes. However, new data from the U.S. Census Bureau shows there has been a notable shift in recent years.


Over the five years ended last year, the ownership rate increased 3.7% for households under 35 years old and 3.2% for households between 35 and 44 years old, a relatively big jump.



The overall U.S. homeownership rate was also higher than pre-pandemic levels, reaching 65.9% in the second quarter compared to 64.6% in 2019. A recovery in homeownership has also been ongoing since 2016, with a particularly notable uptick in 2020 fueled by low mortgage rates and the onset of the pandemic, when many shifted living arrangements.


The rate-increase patterns were similar as those seen from 2016 to 2019 and from 2019 to 2022, with households aged under 44 driving the surges, even though as a group, they still had the lowest rates of homeownership.





Comments


Content by Vidona Residential Columbia Realtors

bottom of page